BKM Capital Partners Picks Up 122k sf Sacramento Industrial Property
BKM Capital Partners has acquired Expo Centre, a 122.3k sf, multi-tenant industrial business park near Cal Expo and downtown Sacramento, for $10.1 mil ($83/sf) in an off-market transaction. Occupancy at the property consists of 32 different tenants across a variety of industries.
The seven-building industrial park is located alongside the SR-160 at 1761-1791 Tribute Rd in what we’re told is one of the tightest industrial metro markets in the Sacramento region. Situated less than four miles from downtown, Expo Centre is currently 81% leased with in-place rental rates at approximately 18% below market value. BKM plans to implement a series of capital improvements to reposition the property. Updates are slated to include new paint, landscaping, and signage, among other improvements. “We always look for properties where there are opportunities for significant value creation,” says BKM’s Director of Acquisitions, Brett Turner. “This is a quality asset in a prime location, but is lacking in terms of needed cosmetic improvements and modernization. These capital upgrades will enhance the overall value of the asset, as well as maximize returns to investors and rent appreciation over time.” BKM acquired the property from a private syndication managed by Sperry Equities. Palmer Capital represented the seller in the transaction.